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Asian Buyers Risk Red Sea for Saudi Oil Despite Houthi Warning
21 Jul
Summary
- Asian buyers continue Red Sea oil loadings despite Houthi blockade threats.
- Six refiners from Asia are proceeding with planned Saudi crude pickups.
- Alternative oil supplies are being considered by concerned Asian buyers.
Asian buyers of Saudi Arabian oil are continuing to send their tankers into the Red Sea for crude pickups, proceeding with planned loadings despite recent Houthi threats of a blockade. Six refiners across Japan, South Korea, China, and Taiwan have indicated that their operations are set to continue as scheduled for now.
Some of these companies are still sending ships to the port of Yanbu. This situation is occurring due to the volatile security conditions in the Red Sea, particularly affecting Asian buyers who rely on these loadings, especially since the Strait of Hormuz effectively closed in late February. Saudi Aramco has been diverting exports to the Red Sea, maintaining sales.
Buyers are engaged in ongoing discussions with Aramco, seeking assurances that operations can proceed normally. Simultaneously, refiners are exploring alternative supply sources should Red Sea flows be interrupted. One South Korean refiner has already purchased US crude, and interest in Abu Dhabi's Murban grade and Oman oil has increased.
